Steve Dechert

Steve Dechert asked about the key challenges in transitioning users from general-purpose large language models (LLMs) to Talkspace's specialized AI agent, and what factors would drive the high end of the 2026 revenue guidance.

Answer

CEO Dr. Jon Cohen stated that the Talk AI agent is in early beta, positioned for serious, confidential conversations with security and safety, and advised to 'stay tuned' for more information post-beta. CFO Ian Harris clarified that a material portion (30-50%) of payer revenue comes from existing members, with new users driven by paid marketing, organic LLM optimization, and deeper payer directory integrations.

Steve Dechert inquired about the key challenges in transitioning users from general-purpose large language models (LLMs) to Talkspace's specialized Talk AI agent, and also asked for clarification on the factors driving the high end of the 2026 revenue guidance, particularly regarding new versus existing members.

Answer

CEO Dr. Jon Cohen stated that the Talk AI agent is in beta, positioned for serious, confidential, and HIPAA-protected conversations, and it's too early to predict user migration from general LLMs. CFO Ian Harris clarified that a material portion (30-50%) of 2026 payer revenue comes from existing members, with new users driven by paid marketing, organic LLM optimization, and payer directory integrations.

Steve Dechert from KeyBanc Capital Markets asked about changes in marketing spend allocation and recent trends in reimbursement rate negotiations with payers.

Answer

CFO Ian Harris noted no material changes in core marketing allocation but mentioned testing new channels for Medicare and military audiences. CEO Jon Cohen stated that payer reimbursement rates are renegotiated every few years and, having recently completed a cycle, he does not anticipate any significant negotiations within the next year.

Steve Dechert from KeyBanc Capital Markets inquired about changes in marketing spend allocation and trends in reimbursement rate negotiations with payers.

Answer

CFO Ian Harris noted no material changes in core marketing allocation but mentioned testing new channels for the Medicare and military populations. CEO Jon Cohen stated that payer rate renegotiations occur every few years and nothing significant is expected within the next year.

Steven Dechert asked about the benefits of ABCL 635 compared to existing hormonal treatments for hot flashes and whether any molecules currently in development would directly compete with ABCL 635.

Answer

Carl Hansen, AbCellera's President and CEO, clarified that ABCL 635 is positioned as an alternative to menopausal hormone therapy (MHT), addressing women with contraindications or tolerability issues. He acknowledged existing competitors like Veozah (Astellas Pharma) and elinzanetant (Bayer) on the market, expressing confidence in ABCL 635's potential for differentiation in dosing, safety, and efficacy.

Steve Dechert of KeyBanc Capital Markets asked about Absci's capacity for additional partnerships following the Almirall expansion and requested an update on the HIV collaboration with Caltech.

Answer

CFO Zach Jonasson assured that capacity is reviewed quarterly and that the company is well-positioned for new partnerships, aided by efficiencies from its AI platform. CEO Sean McClain reported no new updates on the Caltech HIV program, stating it is progressing well and is currently in Caltech's hands for their portion of the collaborative work.

Steve Dechert of KeyBanc Capital Markets asked about Absci's capacity for new partnerships following the Almirall expansion and requested an update on the Caltech HIV collaboration.

Answer

CFO & CBO Zach Jonasson stated that capacity is reviewed quarterly and is sufficient for current and new partnerships, partly due to AI-driven efficiencies. CEO Sean McClain reported no new updates on the Caltech HIV program, noting it is progressing well and is currently with Caltech for their portion of the work.

Steve Dechert of KeyBanc Capital Markets asked about the timeline for realizing cost benefits from new AI tools and requested an update on the company's new EHR selection process.

Answer

CEO David Bourdon explained that AI tools for revenue cycle and scheduling are already contributing to efficiency and quality, driving long-term operating leverage rather than immediate, large cost reductions. He noted that the AI for clinician documentation is primarily aimed at improving satisfaction. He added that a decision on a new EHR is expected in the second half of 2025.

Steve Dechert of KeyBanc Capital Markets asked for specific reasons behind the slowdown in Tier 1 software renewals and inquired about the profitability profile of the QSP business relative to Certara's other offerings.

Answer

CFO John Gallagher attributed the Tier 1 software issue to the quarterly lumpiness of bookings and expressed high confidence in second-half renewals. Regarding QSP, he noted it is currently a services business with a typical services profitability profile and mentioned the upcoming launch of Certara IQ, a software product for QSP.

Steve Dechert of KeyBanc Capital Markets questioned the company's refund policy, the reasons for a higher refund rate in the quarter, and whether LifeMD still facilitates prescriptions for personalized (compounded) GLP-1s.

Answer

CEO Justin Schreiber described the refund policy as 'extremely liberal,' offering full refunds to patients who cannot access or afford therapy. He attributed the higher rate to the high cost of branded GLP-1s, which leads some patients without insurance to seek cheaper alternatives. He confirmed that providers can still prescribe personalized GLP-1s to third-party pharmacies when clinically appropriate.